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Title: World of Warcraft costs 200 mil to run.
Post by: Ratman_tf on September 17, 2008, 12:37:03 AM
http://news.yahoo.com/s/zd/20080916/tc_zd/232075


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Lakov_Sanite on September 17, 2008, 12:48:23 AM
Quote
apparently the biggest infrastructure cost -- customer service.

Needs to be double triple bolded for other game companies.

Also...money hats? No, they built a factory made out of money, they then wrapped chinese workers in money uniforms to cut and sew together the money hats.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: lamaros on September 17, 2008, 12:55:48 AM
Title is incorrect. Or at the very least misleading.

Quote
That's $200 million for the total cost of upkeep since the game's November, 2004 release (presumably not including the initial cost to develop the game). This includes payroll for the entire staff, hardware support, and -- apparently the biggest infrastructure cost -- customer service.

That's not running costs per year.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ratman_tf on September 17, 2008, 01:03:54 AM
Title is incorrect. Or at the very least misleading.

I prefer to think of it as Attention Grabbing!  :grin:


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ubvman on September 17, 2008, 02:51:14 AM
Title is incorrect. Or at the very least misleading.

Quote
That's $200 million for the total cost of upkeep since the game's November, 2004 release (presumably not including the initial cost to develop the game). This includes payroll for the entire staff, hardware support, and -- apparently the biggest infrastructure cost -- customer service.

That's not running costs per year.

200 million since 2004 = around 50 million a year - probably a lot higher in the first year as they added in more hardware when they realized, "ZOMG! We can wear money hats now!"
 
Anyways, is that 100% earmarked for WoW or Blizzard in general? I mean, you could count the cafeteria lady and janitorial services for Blizzard in general (basic overhead)  in that figure too. Also, whats the biggest cost in CS? How hard can billing and credit card # taking be, or having a telephone guy / CS peon from India/Vietnam say, "I can't help you with that, try using the knowledge base..."


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Fordel on September 17, 2008, 02:53:44 AM
To do it correctly? Very.

They probably are also dealing with sheer SCALE for the operation(s).


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Wasted on September 17, 2008, 03:38:52 AM
If that includes development of the expansions as well then that makes the running costs seem far lower as well.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ratman_tf on September 17, 2008, 04:47:23 AM
If that includes development of the expansions as well then that makes the running costs seem far lower as well.

It doesn't seem to cover development costs. Nobody in the articles is 100% dead certain though.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Lakov_Sanite on September 17, 2008, 07:56:50 AM
Title is incorrect. Or at the very least misleading.

Quote
That's $200 million for the total cost of upkeep since the game's November, 2004 release (presumably not including the initial cost to develop the game). This includes payroll for the entire staff, hardware support, and -- apparently the biggest infrastructure cost -- customer service.

That's not running costs per year.

200 million since 2004 = around 50 million a year - probably a lot higher in the first year as they added in more hardware when they realized, "ZOMG! We can wear money hats now!"
 
Anyways, is that 100% earmarked for WoW or Blizzard in general? I mean, you could count the cafeteria lady and janitorial services for Blizzard in general (basic overhead)  in that figure too. Also, whats the biggest cost in CS? How hard can billing and credit card # taking be, or having a telephone guy / CS peon from India/Vietnam say, "I can't help you with that, try using the knowledge base..."


AFAIK all the tech support is not outsourced. Every time I've called I've gotten people on the phone who knew english and weren't confused about their own game/product. Probably be less than 200mil if they went to india for that.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Nonentity on September 17, 2008, 08:10:25 AM
All customer service is in house. They setup a tech support center in Austin, I believe.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 17, 2008, 08:42:01 AM
or having a telephone guy / CS peon from India/Vietnam say, "I can't help you with that, try using the knowledge base..."

This is probably why it costs them so much for CS, because they don't do this at all.  No matter how cool it is to hate Blizzard at the moment, they have the best run CS I've ever seen in a MMOG.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Merusk on September 17, 2008, 09:24:48 AM
or having a telephone guy / CS peon from India/Vietnam say, "I can't help you with that, try using the knowledge base..."

This is probably why it costs them so much for CS, because they don't do this at all.  No matter how cool it is to hate Blizzard at the moment, they have the best run CS I've ever seen in a MMOG.

As mentioned in other, previous threads.. the biggest headache with their CS is when you get one who wants to Roleplay.  They're all very effective and resolve problems (including "whoops I'm a dumbass and shouldn't have rolled, can you give item X to player Z" requests) really quickly.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Lakov_Sanite on September 17, 2008, 09:32:31 AM
or having a telephone guy / CS peon from India/Vietnam say, "I can't help you with that, try using the knowledge base..."

This is probably why it costs them so much for CS, because they don't do this at all.  No matter how cool it is to hate Blizzard at the moment, they have the best run CS I've ever seen in a MMOG.

As mentioned in other, previous threads.. the biggest headache with their CS is when you get one who wants to Roleplay.  They're all very effective and resolve problems (including "whoops I'm a dumbass and shouldn't have rolled, can you give item X to player Z" requests) really quickly.

I don't think we're talking about in game GM's and are you on an RP server? if so than I don't think it's a big issue and for what it's worth I'm on an rp server and never had a gm do anything but business and maybe a smiley face.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Zetor on September 17, 2008, 10:17:02 AM
I'm on a pvp server, and the one time I talked to a GM involved a lot of RP-talk [I didn't mind though]. My problem wasn't the rp, but that they didn't actually *solve* the problem [which was a typical "item-was-masterlooted-to-me-by-mistake" thing, go go warlock with resto druid belt], they told me to suck it up... I think them doing anything about mis-loots actually depends on whether the GM feels like bothering with something like this at the time. Ah well.

OTOH, when an enchantment recipe rotted on a boss because the ML'r [who wasn't an enchanter] left it for last, they mailed it to me (as the only enchanter in the raid) a day later, which was pretty awesome.


-- Z.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 17, 2008, 11:13:56 AM
My problem wasn't the rp, but that they didn't actually *solve* the problem [which was a typical "item-was-masterlooted-to-me-by-mistake" thing, go go warlock with resto druid belt], they told me to suck it up...

We had a mislooted item this weekend on a Kara run where the item was sharded and the GM still fixed it for us.  I told the suckers in vent they were wasting their time since the item had been sharded.

So sorry that you've had problems in the past, your experience is very atypical from what I've seen.

EDIT:  No roleplaying from the GM either, just all business and fixed in a jiffy.  I've never seen the GM roleplay thing..


Title: Re: World of Warcraft costs 200 mil to run.
Post by: stu on September 17, 2008, 11:27:34 AM
I became stuck outside of Shattrath City once while my hearthstone was still cooling down. After sending in a ticket and waiting a few minutes, this came up in within the chat box:

Quote
Your nostrils detect the scent of brimstone as you are surrounded by ebon mist. Before your eyes the black cloud manifests a majestic figure who greets you in a comforting whisper...

Me: I'm stuck!
GM: No problemo! (or somesuch)

And then I became unstuck. I thought it was cool, even though I don't RP.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ingmar on September 17, 2008, 12:10:10 PM
I don't think I've ever had a GM interaction where they DIDN'T do some sort of ridiculous roleplaying entrance, etc.

It wouldn't bother me so much if they didn't always spell at least one word wrong in their emote macros.  :x


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Sjofn on September 17, 2008, 01:51:30 PM
I've had more GMs do a grand BY THE LIGHT OF ELUUUUUUUUUUUUNE greeting than not, and we're on a normal ol' PvE server.

I do think CoX's CS was better (when I played it, anyway), but I'm sure some of that is a function of just how much bigger WoW is.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Merusk on September 17, 2008, 03:32:50 PM
I've had 2/3 of the GMs I've interacted with do the entry thing, and continue on "in-character" while having the conversation.  (Although I admit I liked the Pirate guy.  "Arr, we'll keel haul that monster and see that he acts right for ye.")  No, I'm not on an RP server.

I think it's just based on the mood/ shift of the guys doing the work. It doesn't offend me, but some times you just don't want to flounce about and want them to act like a normal CS rep.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Jayce on September 17, 2008, 05:30:04 PM
Also, whats the biggest cost in CS? How hard can billing and credit card # taking be

Never underestimate the number of abject dumbasses in the world.  You people and your master loot issues are probably the ones they absolutely love to answer.



Title: Re: World of Warcraft costs 200 mil to run.
Post by: LC on September 17, 2008, 08:47:00 PM
So most of the $15 monthly fee is pure profit.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Lakov_Sanite on September 17, 2008, 08:51:37 PM
So most of the $15 monthly fee is pure profit.

(http://img.costumecraze.com/images/vendors/rasta/7772-main.jpg)


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ratman_tf on September 17, 2008, 10:57:22 PM
I'm sure they've dumped a ton of that money into SC2 and D3 development.

But yeah. Blizz and Vivendi aren't hurting.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Trouble on September 17, 2008, 11:55:00 PM
(http://i2.photobucket.com/albums/y43/virozir/gangstagmlol_original.jpg)


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Ratman_tf on September 18, 2008, 12:23:26 AM
Solid. That be propa CS yo.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: AngryGumball on September 18, 2008, 02:19:44 AM
I so would not know how to handle a GM like that. I know the player started it.
The Gm even RP'ed the send me a positive feedback email instead of the usual macro.

Btw, I had a GM allow me to take ingame screenshots with him after talking to same one over three-ish weeks. Cept the in game char did not match the GM name. Nor was the GM wearing much ZOMG gear your amazing to see in person. Just a couple GM items.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Oban on September 18, 2008, 07:51:10 AM
That has got to be a jive addon.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Slyfeind on September 18, 2008, 11:22:37 AM
Holy crap, and he even did it by the numbers: Hello, got time to chat, how are you, what's the problem, let me repeat it, here's what I'll do, anything else, have fun and good-bye.

He's good.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: WindupAtheist on September 18, 2008, 01:10:28 PM
Quote from: Article
That leaves 9 million paying subscribers who, at the $15 fee, are generating $135 million every month.

Yeah, because Blizzard is generating $15 income per month on every single player in China.

Come on, this sort of "10 million subs x $15 = OMG!" math would get someone laughed off the board around here.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: HaemishM on September 18, 2008, 01:34:35 PM
Ok, half the number then. Say they only get the $15 a month off of 5 million subs. $15 x 5 million = $75 million in revenue a month. 3 months to recoup the entire operating costs since the game went live.

MONEY... HATS.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Fordel on September 18, 2008, 03:35:47 PM
I so would not know how to handle a GM like that. I know the player started it.
The Gm even RP'ed the send me a positive feedback email instead of the usual macro.

Btw, I had a GM allow me to take ingame screenshots with him after talking to same one over three-ish weeks. Cept the in game char did not match the GM name. Nor was the GM wearing much ZOMG gear your amazing to see in person. Just a couple GM items.


GM's just wear that robe and hood last I knew. I've never actually seen one in game though :( . I've only ever needed to speak with a GM directly like twice in WoW, and both times it was a BY THE LIGHT OF THE MOOOON!


Title: Re: World of Warcraft costs 200 mil to run.
Post by: CharlieMopps on September 18, 2008, 05:29:05 PM
I absolutely guarantee you that running WOW doesn't cost them more than a couple hundred thousand a month. 90% of that would be CS costs. The servers and bandwidth are nothing.

Now, if you add on development of expansions and stuff... along with the magic they work to avoid paying taxes... maybe $50mil... but that would be a real stretch.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Trippy on September 18, 2008, 05:57:28 PM
I absolutely guarantee you that running WOW doesn't cost them more than a couple hundred thousand a month. 90% of that would be CS costs. The servers and bandwidth are nothing.
Unless you got sources to back that up you are just making shit up.

As a trivial counterpoint 50 CS people * $5K a month per person for salary, health care benefits, facilities, etc. comes out to $250K. And that's just one location. Blizzard has 3 separate setups, NA (US), Europe and S. Korea (China and other parts of Asia are operated by, uh, operators).

For their China operator The9, you can look at their quarterly operating expenses since they are a public company. It's a little tricky to look at their numbers now since they now operating multiple games but in, say, 2006, when it was basically just WoW they had operating expenses of ~US$24 million. That represents about half the total WoW subscriber base but obviously expenses for things like wages/salaries are much much lower in China so if assume it's costing Blizzard about double that to operate the 3 setups mentioned above you get $50 million a year in operating expenses. Even if you don't double it and assume Blizzard's expenses are roughly equivalent to The9s that's still an order of magnitude more than your "couple hundred thousand a month" claim.



Title: Re: World of Warcraft costs 200 mil to run.
Post by: Venkman on September 19, 2008, 07:33:26 AM
Further to that, and I'm only asking the question here, how would bandwidth costs for a game this size with this much peak activity be anything but "nothing"?


Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 19, 2008, 07:51:57 AM
I hear that WoW runs on pixie wishes and unicorn dreams.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Merusk on September 19, 2008, 10:20:13 AM
As a trivial counterpoint 50 CS people * $5K a month per person for salary,

You think CS people make $5k a month.  That's cute.  Halve it and you're at a very highly-paid CS position.  It's a very VERY good job if you get healthcare that doesn't cost $200 a month (family plan).


Title: Re: World of Warcraft costs 200 mil to run.
Post by: WayAbvPar on September 19, 2008, 12:01:35 PM
Running a health care plan for employees ain't cheap. I know my benefits package is nearly as expensive as my salary, but I probably have a better package than theirs. Still, including all benefits and the cost of maintaining the work space, I don't think $5k is out of line at all. Might be a bit low, even.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Merusk on September 19, 2008, 12:05:42 PM
I think I misread, then. I thought he was saying $5k PLUS those costs.  :uhrr:  I'm watching my son at work while the wife's at an interview, so I'm not wasting time as efficiently as I should be.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Trippy on September 19, 2008, 03:39:00 PM
As a trivial counterpoint 50 CS people * $5K a month per person for salary,
You think CS people make $5k a month.  That's cute.  Halve it and you're at a very highly-paid CS position.  It's a very VERY good job if you get healthcare that doesn't cost $200 a month (family plan).
No I didn't say they make $5K a month. Go back and read my post which you chopped off.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Strazos on September 19, 2008, 04:05:49 PM
gangstagmlol_original.jpg

Wow...just wow....

Double plus Awesome. I almost choked on my bagel.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Slayerik on September 20, 2008, 07:50:18 PM
As a trivial counterpoint 50 CS people * $5K a month per person for salary,

You think CS people make $5k a month.  That's cute.  Halve it and you're at a very highly-paid CS position.  It's a very VERY good job if you get healthcare that doesn't cost $200 a month (family plan).

This... CS people making 60k a year? Huh?


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Trippy on September 21, 2008, 12:49:43 AM
As a trivial counterpoint 50 CS people * $5K a month per person for salary,
You think CS people make $5k a month.  That's cute.  Halve it and you're at a very highly-paid CS position.  It's a very VERY good job if you get healthcare that doesn't cost $200 a month (family plan).
This... CS people making 60k a year? Huh?
Read my fucking full post not Merusk's chopped off verison.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: CharlieMopps on September 22, 2008, 05:28:20 AM
ok, I read your whole post... still think you're wrong.
1. 5k a month? In CHINA? lol... No healthcare needed in either the China or Europe locations.
2. I worked as a CS rep for a software company for several years. Top pay was $30k/year... and that was a manager. Most of us were making more like $8/hr and less than half were full time (no healthcare) And that's only here in the US... Again, the Europe and China locations don't need healthcare due to government systems.
3. Wages in China are around $40 a month... and that's for a good job.
4. I also worked for ATT for a while, and guess who one of our customers was... Sony Online Entertainment. ATT handled all their data trunks... They were burstable, and their usual bill was around $40k-50k/month with spikes whenever a big patch came out. This was for ALL of their games. It was a few years ago though... right before EQ2 came out... but I should also mention that bandwidth is significantly cheaper today than it was then... and the amount of bandwidth games use today hasn't gone up at all... you can still play using a modem.
5. Now I work in a NOC and monitor a network VASTLY larger than anything WOW uses. We monitor the entire network with 16 people. No we aren't paid all that much and the only reason we have 16 is due to scheduling.

So no, I didn't just make my figure up.   :awesome_for_real:


Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 22, 2008, 08:00:01 AM
You can always tell people who have no business sense when they count the cost of an employee as the employee's salary alone.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Merusk on September 22, 2008, 09:12:39 AM
As a trivial counterpoint 50 CS people * $5K a month per person for salary,
You think CS people make $5k a month.  That's cute.  Halve it and you're at a very highly-paid CS position.  It's a very VERY good job if you get healthcare that doesn't cost $200 a month (family plan).
This... CS people making 60k a year? Huh?
Read my fucking full post not Merusk's chopped off verison.


Yeah, I even said after Way pointed it out that I must've misread.  I WAS WRONG STOP QUOTING ME.   :grin:


Title: Re: World of Warcraft costs 200 mil to run.
Post by: Slyfeind on September 22, 2008, 11:52:06 AM
You can always tell people who have no business sense when they count the cost of an employee as the employee's salary alone.

Dude, all those computers are FREE!!!


Title: Re: World of Warcraft costs 200 mil to run.
Post by: CharlieMopps on September 23, 2008, 05:24:40 AM
We aren't talking about setup costs. We are talking about monthly reoccurring costs.

But if you want to... the price of a bunch of compaq workstations, when bought in bulk would most likely be around $200-$300 a pop... The server equipment in the building would be a little more and I promise you they RENT the property their on. And this is all assuming they didn't just hire some CS firm, which is probably what they did.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: lamaros on September 23, 2008, 06:12:33 AM
Stop talking fuckwit. You're giving me a headache.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 23, 2008, 07:59:23 AM
I think he should keep talking, I enjoy feeling superior.

Very superior.


Title: Re: World of Warcraft costs 200 mil to run.
Post by: CharlieMopps on September 23, 2008, 08:04:00 AM
Stop talking fuckwit. You're giving me a headache.

That was my goal.  :grin:

I think he should keep talking, I enjoy feeling superior.

Very superior.

That was not... but you always feel like that... it couldn't be helped.



Title: Re: World of Warcraft costs 200 mil to run.
Post by: cevik on September 23, 2008, 08:06:39 AM
With people like you speaking out of your ass, it's easy to do.